 Estate planning is a difficult and complex area of law. Our office is here to help you figure all of that out so that you can have an estate plan tailored to your wants and needs. Since most people want or need a living trust, I'd like to give you a simple explanation of the two most popular living trust types for married folks. By the way, both types of living trusts for married people can save money and protect you and give your assets to your loved ones the way you want it to be done. However, there are some distinct differences in each type of living trust. Remember, my explanation here will be fairly simple. I just want to give you the basic differences between the two most popular types of living trusts for married couples. The first is the classic AB trust, or another name for this type of trust is the ABC trust. This type has been around for many, many years. It remains a very popular choice. Basically, you and your spouse can add and subtract assets to that trust anytime you want. And when both of you have passed away, your loved ones will receive what you want them to have in a way that you want them to have it. When the first spouse passes away, the trust assets of the ABC trust are divided by the attorney into two or sometimes three groups. One group of assets is allocated to the A trust or survivor's trust. And the remaining one or two groups make up the B or bypass trust and depending on the size of the estate, the C or QTEP trust. The main thing that distinguishes the AB or ABC trust types from the next ones I'll discuss is that half of all trust assets of the AB or the ABC trust must be allocated by the attorney to the decedent half of the trust. And the other half is allocated to the survivor's part. Simply put, if the family trust has, let's say, one and a half million dollars worth of assets in it, then $750,000 worth of assets are given to the B trust. And $750,000 worth of assets are given to the A trust. This is after someone has passed away. The main difference between these two trusts is that the surviving spouse can use the assets of the A trust any way he or she wants. The assets of the B trust are also available for the surviving spouse. But he or she must follow the rules of that trust and cannot just spend the assets any way he or she wants. I know this sounds complex and actually it's easy to explain in the office when we use illustrations. The AB or ABC trust type is generally selected when both spouses want to protect different sets of beneficiaries, say from previous marriages. Or if the spouses want to make it more difficult for the surviving spouse to do whatever they want to do with the deceased spouse's portion of the estate. The survivor can always spend both portions. It's just that the first spouse to die side has rules in it that prevent spending it any way the other one wants. The second type of trust that many couples now select is called the survivor's trust with disclaimer option. Basically this type of trust is the most flexible. When one spouse dies, all of the assets in the family trust are given to the survivor's trust. The surviving spouse is in charge and can do anything he or she wants with those survivor's trust assets. The disclaimer option is used, if at all, for tax protection if such protection is needed when the first spouse dies. The best thing about the survivor's trust with disclaimer option is that the surviving spouse may change the beneficiaries if there are changes or problems that are discovered after the first spouse has passed away. I know this all seems a bit confusing, but during your first appointment I'll explain all of your trust options in simple enough language and with illustrations to help you see what your choices are. I'm looking forward to helping you with your estate plan. Give my office a call at 408-288-7878 or fill in the appointment information form on our website.